• Does Financial Development contribute to Poverty Reduction.

      Jalilian, Hossein; Kirkpatrick, Colin (2005)
      The article examines the contribution of financial development to poverty reduction in developing countries. Building on earlier research which has established links between financial development and economic growth, and between economic growth and poverty reduction, the article tests for a causal process linking financial sector growth and poverty reduction. The empirical results indicate that, up to a threshold level of economic development, financial sector growth contributes to poverty reduction through the growth-enhancing effect. The impact of financial development on poverty reduction will be affected, however, by any change in income inequality resulting from financial development.
    • Financial development, economic growth and human capital accumulation: what is the link?

      Das, K.; Harper, J.; Arora, Rashmi (2014-07)
      A number of studies have explored the factors influencing financial development. Among them are national legal origin, settler mortality hypothesis, institutional factors, political factors, macroeconomic policies including capital account openness, social capital and also cultural factors. The relationship between financial development, human capital and economic growth, although acknowledged in the theoretical literature remains less explored at the empirical level. In this study we examine interaction between financial development, human capital and economic growth. The study aims to understand and examine how financial development is related to human capital accumulation and economic growth in a unified framework. In a cross-country panel data context using rigourous econometric techniques we examine these questions.
    • The Impact of Regulation on Economic Growth in Developing Countries: A Cross-Country Analysis.

      Jalilian, Hossein; Kirkpatrick, Colin; Parker, D. (2007)
      The role of an effective regulatory regime in promoting economic growth and development has generated considerable interest among researchers and practitioners in recent years. In particular, building effective regulatory structures in developing countries is not simply an issue of the technical design of the most appropriate regulatory instruments, it is also concerned with the quality of supporting regulatory institutions and capacity. This paper explores the role of state regulation using an econometric model of the impact of regulation on growth. The results based on two different techniques of estimation suggest a strong causal link between regulatory quality and economic performance.
    • Role of Finance in Economic Development

      Arora, Rashmi (Edward Elgar Publishers, 2022)
      A huge body of literature has well acknowledged the crucial role played by financial sector in economic growth. Financial sector enables mobilisation of savings and allocation of credit for production and investment. Among its other functions are supplying transaction and portfolio management services and providing payment services, and source of liquidity for the firms. Financial sector also monitors borrowers, matches illiquid assets with liquid liabilities, and integrates credit and liquidity provision functions (Bossone, 2000). Banks boost economic growth by identifying the entrepreneurs with the best chances of successfully initiating new goods and production processes (King & Levine, 1993) and facilitate long-run investments in the high return projects (Bencivenga & Smith, 1991). In this chapter we examine the role of financial sector in achieving economic growth and development. We also briefly look at the factors determining financial development.
    • Rostow's Stages of Growth

      Arora, Rashmi (Edward Elgar Publishers, 2022)
      In this chapter we lay out a broad outline of Rostow’s Stages growth theory. Rostow in his seminal work identified five different stages of economic growth - the traditional society, the preconditions for take-off, the take-off, the drive to maturity, and the age of high mass consumption. Interest in Rostow’s stages theory was in 1960s and persists even now as researchers are still intrigued by the ideas and notions laid out in Rostow’s theory (Costa et al. 2016 a,b; McCartney 2018; Solivetti 2005). Interestingly in today’s world, the theory is being applied to different contexts and scenarios such as application of theory to environment, China-Pakistan Economic Corridor etc (Kesgingoz, H. and Serkan 2016; McCartney 2018). The stages of growth theory covered a broader spectrum of issues ranging from economic, social and political to US-Russia (the then USSR) cold war and their dominance at the global level. In this chapter we restrict ourselves to economic aspects of stages theory only.